Trade discount - authorised dealer of reputed motor vehicle manufacturers - applicant allows discount at the time of sale of vehicles to its customers as per the policy of the company, however, since the invoices are to be raised for full value of the vehicles, discount is allowed by issue of credit notes to the respective customers. Such discount being as per the company policy has the effect of reducing the sell price of the vehicle. The discount is described as rebate in the credit notes issu .....

id unnecessary wastage of time, we think it appropriate to decide the matter. Since the facts are admitted and the law has been settled by their Lordship of the Supreme Court, we think that the question as raised by the assessee has to be answered in its favour. Resultantly, we do so. It is held that the Tribunal was not justified in rejecting the claim of the applicant by holding that the assessee is not entitled for the Trade Discount and, therefore, the orders of the second Appellate Authorit .....

, learned counsel for the applicant. Shri Milind Phadke, learned Govt. Advocate for the respondent/State, on advance notice. Heard. In this Tax Reference, reference is made : Whether in view of the decision of the M.P. High Court in the case of Titan Industries Ltd., Indore vs. Assistant Commissioner, Commercial Tax, M.P. & Others reported in (2016) 28 STJ 612(MP), the Tribunal was justified in holding that the assessee is not entitled for the Trade Discount for the Assessment Year 2001-2002 .....

d dealer of reputed motor vehicle manufacturers allows discount at the time of sale of vehicles to its customers as per the policy of the company, however, since the invoices are to be raised for full value of the vehicles, discount is allowed by issue of credit notes to the respective customers. Such discount being as per the company policy has the effect of reducing the sell price of the vehicle. The discount is described as rebate in the credit notes issued to the customers. The customer, thu .....

the same was given after issue of bills by way of credit notes. 5. The applicant challenged the aforesaid order by filing first appeal. The First Appellate Authority dismissed the appeal vide order dated 29/07/2005 by merely following the decision given by M.P. Commercial Tax Appellate Board in the case of Vandana Sales Corporation vs. CST, MP, reported in 29 VKN 376, and the decision in the case of M/s. Apollo Tyres Ltd. v. Commissioner of Commercial Tax, M.P., reported in 1 STJ 24. 6. Being a .....

y way of credit notes by describing it as rebate was really in the nature of trade discount. 7. The applicant, thereafter, filed an application under Section 70(1) of M.P. Commercial Tax Act, 1994 before MPCTAB for statement of case to High Court of M.P., Indore Bench. This application has been rejected by order dated 28/07/2016 on the ground that no case for review is made out. 8. Learned counsel for the applicant has drawn our attention to the decision of High Court of M.P., Indore Bench in th .....

, Indore(supra) are relevant which reads as under:- 24. The Hon'ble Supreme Court in the case of IFB Industries Ltd v. State of Kerala (2012) 20 STJ 485 (SC); (2012) 49 VST 1 (SC) has held that the discount through credit note issued even subsequent to a sale without their mention in the sale voucher of the bill is permissible. It has been held that claim for deduction of the amount of trade discount cannot be disallowed only on the ground that the discount amount were not shown in the sale .....

deduction of discount allowed as per ordinary trade practice by way of credit notes without showing same in sale bill. The decision of the Division Bench in the case of BPL Ltd. (supra) has been further followed by the Division Bench of this Court in the case of M/s. D & H Secheron Pvt. Ltd. v. State of M.P., passed in W.P. No.14547 of 2010 on 5.08.2014. 27. On the basis of discussion made herein-above an in the light of the law laid down by the Apex Court in the judgment of IFB Industries L .....

erred in law in rejecting the claim of the petitioner for grant of trade discount and, therefore, we are unable to sustain the order of the appellate and assessing authority coming under the writ petition. The impugned orders in all the writ petitions are quashed. The case of the petitioner for the respective assessing period are remitted to the assessing authority with a direction to make assessment and pass a fresh order in accordance with law on the aforesaid judgment. The assessing authority .....